You are ready to buy a house and you have $50.000 for a down payment and closing costs. 'Closing costs are estimated to be 6 percent of the loan value. 'You have an annual salary of $72,000. 'The bank is willing to allow your monthly mortgage payment to be equal to 31 percent of your monthly income. The interest rate on the loan is 7.2 percent per year with monthly compounding (.6 percent per month) for a 15 -year fixed rate loan. 'How much can you offer for the house? $204,385 $242,122 $232,465 $122,242